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| Imposition Of Share Transaction Levy |
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AN ACT TO MAKE PROVISION FOR THE IMPOSITION OF CERTAIN LEVIES CONSEQUENTIAL TO THE 2005 BUDGET PROPOSALS ; AND TO MAKE PROVISION FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.
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BE it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows :-
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[30th March
, 2005 ]
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Short title
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1. This Act may be cited as the Finance Act, No. 5 of 2005.
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| IMPOSITION OF SHARE TRANSACTION LEVY |
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Imposition of Share Transaction Levy.
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7. There shall be imposed with effect from the year commencing on January 1,2005 and for every year thereafter, a levy to be called the Share Transaction Levy at the rate of 0.2 per centum from every buyer and seller, on the turnover of every share trading transaction, which is conducted through a Stock Exchange.
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Share Transaction Levy to be collected by relevant stockbroker &c
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8. The Share Transaction Levy so imposed shall be collected by the relevant stockbroker, stock dealer or custodian bank as the case may be, who is responsible for the settlement of such share transaction. The Share Transaction Levy so collected in terms of section 7 shall be paid to the stock exchange through which the share transaction took place, at the time of making settlement of such share transaction by the respective stockbroker, stock dealer or custodian bank, as the case may be. The Stock Exchange shall remit the levy so collected to the Commissioner-General within three working days from the date of such settlement.
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Returns to be furnished of collections.
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9. The Stock Exchange shall furnish to the Commissioner-General, a monthly statement giving the total turnover in respect of which the Share Transaction Levy has been remitted to the Commissioner-General within fifteen days from the last day of each month.
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Action in case of failure to pay levy.
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10.
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(1) Any stockbroker, stock dealer or custodian bank as the case may be, to whom the provisions of this part of this Act applies, who fails to pay the total amount of the Share Transaction Levy in terms of sections 7 and 8, shall be deemed to be a defaulter, and where such defaulter is a body corporate, the Chairman of the Board of Directors and every Director or principal officer of such body corporate shall be deemed to be a defaulter for the purposes of this Part of this Act, and such Levy as is riot paid on or before the due date shall be deemed to be a Levy in default.
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(2) The defaulter shall be liable to pay a surcharge in addition to the Share Transaction Levy in default, calculated
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(a) at the rate of ten per centum of the amount of such levy as is in default for the each subsequent period of one month or part thereof, from the due date for the payment of the Levy under section 8 ; and
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(b) at the rate of two per centum of the amount of such Levy as is in default for each subsequent period of one month or part thereof, from the due date for the payment specified in paragraph(a)
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which surcharge shall be collected by the Commissioner-General.
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(3) The Commissioner-General shall take action to recover the Share Transaction Levy or such part of the Levy which is in default for a period of more than three months and the amount of the surcharge accrued thereon, in the manner as is specified hereafter.
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(4) The Commissioner-General shall cause to be issued on the defaulter, three weeks prior to the taking of any steps for the recovery of the Share Transaction Levy in default along with the amount of the surcharge accrued thereon, a Notice, informing the defaulter of the intention of the Commissioner-General to institute proceedings for the recovery of the amount of the Share Transaction Levy in default and the amount of the surcharge accrued thereon in terms of the provisions of this section.
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(5) Where the Commissioner-General issues Notice on the defaulter in terms of subsection (4) but the amount of the Share Transaction Levy in default and the amount of the surcharge accrued thereon remains unpaid even though the period of three weeks specified in such Notice has elapsed, the Commissioner-General shall issue to the Magistrate having jurisdiction over the division in which the defaulter resides or is carrying on business, a Certificate containing the name and address of the defaulter and the total sum in default along with a statement to the effect that the person so named has defaulted in making the payment as required by this section, Where the defaulter is a body corporate, the Certificate shall contain the name of the Chairman of the Board of Directors and of every Director or principal officer of such body corporate.
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(6) The Magistrate shall on receipt of the Certificate issued under subsection (5), issue summons on the defaulter requiring him to appear before him on a date to be specified and show cause as to why proceedings should not be taken against him for the recovery of the amount of the Share Transaction Levy or such part of the Levy which is in default and the surcharge accrued thereon. Where the cause shown appears to the Magistrate to be insufficient so as to explain the reason for the non-payment, the Magistrate shall after recording the same, make order for the recovery of the amount of the Share Transaction Levy in default and the amount of the surcharge accrued thereon, from the defaulter as if it were a fine imposed by the Magistrate. The money so recovered shall be remitted to the Commissioner-General, who shall credit the same to the Consolidated Fund.
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Interpretation for Part II.
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11. In this Part of the Act, unless the context otherwise requires,
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” Commissioner-General” means the Commissioner-General of Inland Revenue appointed in terms of the Inland Revenure Act, No. 38 of 2000 ;
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” custodian bank” means any Bank licensed by the Central Bank of Sri Lanka providing custody services in respect of share transactions ;
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” stockbroker” means any individual or body corporate engaged in the business of buying or selling of securities on behalf of investors in return for a commission ;
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” stock dealer” means any individual or body corporate engaged in the business of buying or selling of securities or in the dealing or jobbing or trading of securities, or the underwriting or retailing of securities ; and
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‘stock exchange” means a market, exchange, or other place at which securities are regularly offered for sale, purchase or exchange, including any services connected with such business.
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Date of operation of this Part and indemnity.
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12.
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(1) The provisions of this Part of the Act shall be deemed for all purposes to have come into operation on January 1, 2005.
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(2) Where any amount has been collected by the Commissioner-General as Share Transaction Levy in terms of this Part of the Act during the period commencing on January 1,2005 and ending on the date of the commencement of this Act, the Share Transaction Levy so collected shall be deemed to have been validly collected and the Commissioner-General is hereby indemnified from any action civil or criminal in respect of the collection of the aforesaid Levy.
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